So rest easy my friends, Japan is safe to take leveraged long bets on for one more day. Oh one more thing, that whole NIRP, low rates, encourage lending, transmission mechanism thing… FUBAR!!

FinMin Aso had some comments on that too..

*ASO: BANKS HAVE MONEY, DON’T HAVE ANYONE TO LEND IT TO

So the entire Keynesian model just hit the endgame of debt saturation? That explains why he said this….

*ASO: MONETARY EASING, FISCAL STIMULUS HAVE LIMITS

Which directly contradicts Kuroda who just yesterday said…

*KURODA: DON’T THINK THERE IS LIMIT FOR BOJ EASING NOW

So Limits or No Limits? Who cares – just buy moar stuff… because Japanese Manufacturing PMI just collapsed to its lowest since records began in Feb 2013…

Moar easing or else… and that will merely anger the Chinese further into retaliation.

* * *

And then came China…

Cheers were heard from around the world as China’s Services PMI jumped off 7 year lows (from 52.7 to 53.8), however this is still below January’s levels – not exactly an exuberant bounce after a trillion of fresh credit injections…

*CHINA NON-MANUFACTURING PMI AT 53.8 IN MARCH

And then Manufacturing hit with a big bounce back into expansion…

*CHINA MANUFACTURING PMI AT 50.2 IN MARCH

This is a major problem for Janet, because if China is back in recovery, then The Fed no longer has to worry about China’s economy when deciding on the next rate hike.

Of course what all this means is that Caixin’s China PMI (due in 30 minutes) will be a miss to baffle everyone with bullshit.

The reaction is “buying” of course…

But China hates it…

And just as predicted…

*CHINA MARCH CAIXIN MANUFACTURING PMI 49.7; EST. 48.3

The highest since Feb 2015…

And the market realizes that “good” China news is a disaster as it removes a major Fed excuse for not hiking…

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Oliver Wright is an international lawyer, financier, and published author. He is the Founder and CEO of Vanquish Merchant Bank. His writings appear in journals such as the Harvard Journal of International Press-Politics. For six years Oliver was an international litigator and corporate attorney practicing cross-border mergers and acquisitions at Gibson, Dunn & Crutcher, the top ranked litigation firm in the country. Oliver Wright holds dual Master and Doctor of Law degrees in International and Comparative Law from Cornell Law School, where he graduated with honors and was Editor of the Cornell Law Review. He was class major valedictorian at UCLA, where he graduated summa cum laude, phi beta kappa with a BA in Communications Studies.